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Customs Policies Update - for the Period of December 2016

Customs Policies Update - for the Period of December...

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Customs Policy Update – December 2016

The State Council Approved the Tariff Adjustment Plan of 2017

With the approval of the State Council, the Tariff Adjustment Plan of 2017 (Shui Wei Hui [2016] No. 31) will take effect on 1 January 2017. The Plan adjusts import tariff rates, export tariff rates and HS codes. The General Administration of Customs also issued the GAC Announcement [2016] No.89, and developed relevant reference materials. For import tariff rates, the Plan adjusts certain most favoured nation tariff, quota tariff rates and conventional tariff rates. The commodity scope of preferential duties and tariff rates remained unchanged. Regarding tariff export rates, the Plan will impose export duties on 213 export goods such as soldering iron etc., among which 50 items are subject to a temporary tax rate of zero. In addition, the HS codes and Commodity Name and Coding Coordination System will be synchronously republished, and certain HS codes will be adjusted based on domestic needs. The HS codes for 2017 will amount to 8547 after republication and adjustment.

The Ministry of Finance, the General Administration of Customs and the State Administration of Taxation Jointly Announced a Notice Concerning Import Tariff Policy Supporting Industrial Development of New Display Devices

The Ministry of Finance, the General Administration of Customs and the State Administration of Taxation jointly announced the Notice Concerning Import Tariff Policy Supporting Industrial Development of New Display Devices (Cai Guan Shui [2016] No.62) on 5 December 2016, in which they decided to continue implementing taxation policies during the thirteenth Five-Year Plan, to support enterprises engaging in manufacturing new display devices and upstream raw materials, as well as spare parts in import goods, so as to push forward the development of the new display industry and support industrial upgrading and optimisation. The notice provides that from 1 January 2016 to 31 December 2020, enterprises engaging in manufacturing new display devices are exempted from import duty for importing self-used productive raw material and consumables that cannot be produced domestically, and that the import value-added tax will be levied according to regulations; importing supporting systems that cannot be provided domestically for building clean rooms and importing spare parts for maintaining and repairing imported productive equipment are exempted from import duty and value-added tax; importing self-used productive raw material and consumables by enterprises engaging in manufacturing key raw materials and spare parts that are in the upstream of new display and cannot be produced domestically is exempted from import duty.

The Ministry of Commerce, the General Administration of Customs and the General Administration of Quality Supervision, Inspection and Quarantine Jointly Announced the Catalogue of Goods Subject to Import and Export Licenses for 2017

On 30 December 2016, the Ministry of Commerce, the General Administration of Customs and the General Administration of Quality Supervision, Inspection and Quarantine jointly announced the Catalogue of Goods Subject to Import Licenses for 2017 (Announcement of the Ministry of Commerce, the General Administration of Customs and the General Administration of Quality Supervision, Inspection and Quarantine [2016] No.85), and the Ministry of Commerce and the General Administration of Customs jointly announced the Catalogue of Goods Subject to Export License for 2017 (Announcement of the Ministry of Commerce and the General Administration of Customs [2016] No.86) , which took effect on 1 January, 2017.

The General Administration of Customs Issued an Announcement Concerning Implementing Consumption Tax Policy Adjustments for Cars at Import Linkage

According to Cai Guan Shui [2016] No.63, from 1 December 2016, the consumption tax for ultra-luxury cars taxably imported for self-use by Chinese embassy and consulate staff, foreign institutions and personnel in China, non-resident permanent staff and according to inter-government agreements with dutiable value at 1.3 million RMB or above, shall be calculated by totalling the production (import) link tax rate and the retail link tax rate (10%). In view of this, the General Administration of Customs issued the Announcement Concerning Implementing Consumption Tax Policy Adjustment for Cars at Import Linkage (GAC Announcement [2016] No.74) on 30 November 2016, which provides that “special cases” must be filled in the column of Nature of Exemption in the Customs declaration for the importation of the aforesaid cars. The relevant rules for completing Customs declarations for imported cars beyond the aforesaid scope remain changed.

For the sake of promoting cross-border trade e-commerce import and export business and regulating Customs management, the General Administration of Customs issued the Announcement on Adding Supervision Model Codes (GAC Announcement [2016] No.75), which will add a supervision model code “1239” (“Bonded cross-border trade e-commerce A” in full, and “Bonded e-commerce A” in short), effective on 1 December 2016, applicable to e-commerce retail imported goods by domestic e-commerce enterprises through Customs specially-supervised areas or bonded logistics centres (B type). However, the supervision model code “1239” does not apply to e-commerce retail import business in ten cities, including Tianjin, Shanghai, Hangzhou, Ningbo, Fuzhou, Pingtan, Zhengzhou, Guangzhou, Shenzhen and Chongqing for the time being.

Announcement of the General Administration of Customs on Release of Origin Criteria for Newly-added Hong Kong/Macau Goods Entitled to Zero Duty and Related Matters

The General Administration of Customs released the Announcement on Release of Origin Criteria for Newly-added Hong Kong/Macau Goods Entitled to Zero Duty as of 1 January 2017 and Related Matters (GAC Announcement [2016] No.77) on 8 December 2016, in which it decided to implement the table of origin criteria for newly-added goods entitled to zero duty under Hong Kong and Macau CEPA as of 1 January 2017, and revised the origin criteria for Hong Kong goods entitled to preferential measures for trade in goods. The HS codes of products in the Table of Origin Criteria for Newly-added Goods Entitled to Zero Duty under Hong Kong CEPA include 22087000, 85471000, 87060030 and 87060090; the HS codes of products in the Table of Origin Criteria for Newly-added Goods Entitled to Zero Duty under Macau CEPA include 16023291 and 6023292; and the HS codes of products in the Table of Origin Criteria for Goods Entitled to Zero Duty under Hong Kong CEPA (Revision) include 32061900 and 63079000. The announcement illustrates the related origin criteria in annexes.

The General Administration of Customs published the Announcement on Issuing the Administrative Rulings on Commodity Classification for 2016 (V) (GAC Announcement [2016] No.78) on 8 December 2016 to classify wearable computers and their accessories (No. C0015) into tariff no. 8471. The Announcement took effect on 1 January 2017.

China Customs Announced Decisions on Commodity Classification for 2016 (VI)

The World Customs Organization recently announced classification decisions on a group of commodities. China’s Customs organization translated and reviewed these decisions by the World Customs Organization. In view of this, the General Administration of Customs published the Announcement on Decisions on Commodity Classification for 2016 (VI) (GAC Announcement [2016] No.79) on 13 December 2016 to publish the sixty commodity classification decisions by the World Customs Organization. The Announcement took effect on 1 January 2017.

The General Administration of Customs announced and put into effect the Announcement on Adding Ports for Cross-border Transportation of Domestic Trade Goods Originating from Heilongjiang Province (GAC Announcement [2016] No.81) on 14 December 2016, in which it decided to add Nansha Port, Yantian Port, Shekou Port, Fuzhou Port, Zhanjiang Port, Xiamen Port and Taicang Port as new entry ports for cross-border transportation of domestic trade goods originating from Heilongjiang Province, and added Russia's Slavyanka Port as a new transit port, with a view to further expand the cross-border transportation of domestic trade goods, promote the development of the Silk Road Economic Belt and the 21st Century Maritime Silk Road in East China and implement the national strategy for rejuvenation of the old industrial base in Northeast China.

The General Administration of Customs Further Specifies Direct Withdrawal of Imported Goods

For the sake of deepening reform on paperless Customs clearance operations and specifying operation of direct withdrawal of imported goods, the General Administration of Customs issued the Announcement Concerning Matters of Further Specifying Direct Withdrawal of Imported Goods (GAC Announcement [2016] No.82), in which it decided to implement paperless operation in country-wide direct withdrawal services for imported goods from 1 January 2017. According to the announcement, where the procedure for applying for direct withdrawal complies with the provisions of the Measures of the Customs of the People's Republic of China for the Administration of Direct Withdrawal of Imported Goods, the part concerned may apply to the Customs via internet for direct withdrawal of imported goods, inputting matters required and producing the relevant electronic data. Where Customs orders the party concerned to handle direct withdrawal of imported goods, Customs will issue a written notice for direct withdrawal of imported goods, and the party concerned shall handle the relevant procedure within 30 days of the receipt of the notice.

The General Administration of Customs issued the Announcement Concerning Matters Related to Operation of Country of Origin Electronic Information Exchange System under China-New Zealand Free Trade Agreement (GAC Announcement [2016] No.84) on 19 December 2016. The “China-New Zealand Country of Origin Electronic Information Exchange System” was formally put into operation on 20 December, which will transfer electronic data of country of origin certificates in real time under the China-New Zealand Free trade Agreement, so as to further facilitate the implementation of the agreement. The announcement specifies the operation in the event that a reminder at a pre-input client shows there is no electronic data about the country of origin certificate in the period of 20 December 2016 to 31 March 2017 and in the period after 1 April 2017. For the goods of which the country of origin electronic data has been received by Customs, no paper country of origin certificate is required by Customs when an importer declares applicable tariffs for importing goods originating in New Zealand under the Agreement. For container-transported goods of which Customs has received their relevant country of origin electronic data, the importer may submit full transport documents showing that container numbers and seal numbers have not been changed during the transportation for determining whether these goods satisfy direct transportation rules under the Agreement.

China Customs Simplified Requests for Country of Origin Certificates under the China-Korea Free Trade Agreement

On 27 December 2016, the General Administration of Customs issued the Announcement Concerning Simplifying Requests for Country of Origin Certificates under the China-Korea Free Trade Agreement (GAC Announcement [2016] No.85) and implemented it the next day, so as to facilitate the implementation of exchange of country of origin electronic data under the China-Korea Free Trade Agreement. The announcement provides that for declaring goods applicable to the agreed rates under the China-Korea Free Trade Agreement, Customs will no longer require the importer to submit the original copy of country of origin certificate at declaration; where a reminder at a pre-input client shows that there is no electronic data about the country of origin certificate, the importer shall make a supplementary declaration of origin according to the relevant rules, declare applicable conventional tariffs, and apply for handling guarantee release procedures for relevant goods.

The General Administration of Customs Issued an Announcement Concerning Management of Bonded Goods Circulation in the Customs Specially-Supervised Zones and Bonded Supervision Places

The General Administration of Customs issued and implemented the Announcement Concerning Management of Bonded Goods Circulation in the Customs Specially-supervised Zones and Bonded Supervision Places (GAC Announcement [2016] No.86), in which it decided to handle circulation of bonded goods in relevant areas according to this circulation. Enterprises handling circulation business in the areas may adopt a manner of “delivering by batches and declaring by concentration”, establish electronic records for bonded goods according to rules, and report information to Customs via the Customs bonded goods circulation management system. The announcement also provides for detailed operation in filing, receiving and delivering goods, declaration, returning and changing goods by enterprises.

Updates on Local Customs Regulations

Xiamen Customs launched the pilot reform of “Internet plus self-declaration” on 5 December 2016. The relevant functions operated in an international trade single window platform of the Xiamen region in China (Fujian) Free Trade Pilot Area. Import and export enterprises as well as their agents may log into the “single window” webpage and client-end to conduct enterprise multi-media identity authentication, conduct “single window” full calibre business declaration, and enquire about the state of the process of Customs clearance. Mail recipients also may log into the system to conduct declarations for personal mail items, and pay the tax by Union Pay or WeChat payment.

Shanghai Customs issued and implemented the Announcement Concerning Bonded Import Business for Cross-border e-Commerce Online Shopping on 27 December 2016, aiming to better supervise cross-border e-commerce retail import in bonded manner for online shopping, and to promote healthy development of cross-border e-commerce. The announcement provides that enterprises may adopt the method of “entering the zone first, declaring later” to handle Customs clearance procedures for importing online shopping bonded goods. The announcement also provides for the management of transferring, leaving, returning goods applications and abandoning goods within Customs specially-supervised zones or bonded logistics centres (B type).

Nanjing Customs Implemented a Model to Centrally Handle Business of Part of Processing Trade

Nanjing Customs issued Nanjing Customs Announcement [2016] No.10 on 27 December 2016, stating that it decided to implement a centralized model to handle related processing trade at Nanjing Customs from 1 January 2017, aiming to further push for streamlining the administration and deepen the integration reform of processing trade supervision. The announcement divided hand book business of processing trade at Nanjing Customs into three regions, i.e. Nanjing, Suzhou and Nantong, so as to centrally handle the establishment (change) and cancellation of hand books for enterprises (enterprises within Customs specially-supervised zones or bonded supervision places are excluded) using hand books to handle their processing trade.